Arch Resources Inc (ARCH) Fundamental Analysis & Valuation

NYSE:ARCH • US03940R1077

Current stock price

134.83 USD
+0.94 (+0.7%)
At close:
133.13 USD
-1.7 (-1.26%)
After Hours:

This ARCH fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

8

1. ARCH Profitability Analysis

1.1 Basic Checks

  • In the past year ARCH was profitable.
  • ARCH had a positive operating cash flow in the past year.
  • Of the past 5 years ARCH 4 years were profitable.
  • ARCH had a positive operating cash flow in each of the past 5 years.
ARCH Yearly Net Income VS EBIT VS OCF VS FCFARCH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

1.2 Ratios

  • With an excellent Return On Assets value of 7.57%, ARCH belongs to the best of the industry, outperforming 80.95% of the companies in the same industry.
  • The Return On Equity of ARCH (12.43%) is better than 80.95% of its industry peers.
  • ARCH's Return On Invested Capital of 8.85% is amongst the best of the industry. ARCH outperforms 80.27% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for ARCH is significantly below the industry average of 61.57%.
  • The 3 year average ROIC (29.63%) for ARCH is well above the current ROIC(8.85%). The reason for the recent decline needs to be investigated.
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROIC 8.85%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ARCH Yearly ROA, ROE, ROICARCH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100 150

1.3 Margins

  • Looking at the Profit Margin, with a value of 6.69%, ARCH is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
  • ARCH's Profit Margin has improved in the last couple of years.
  • ARCH's Operating Margin of 7.76% is fine compared to the rest of the industry. ARCH outperforms 62.59% of its industry peers.
  • In the last couple of years the Operating Margin of ARCH has grown nicely.
  • ARCH has a Gross Margin (17.11%) which is comparable to the rest of the industry.
  • ARCH's Gross Margin has improved in the last couple of years.
Industry RankSector Rank
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
ARCH Yearly Profit, Operating, Gross MarginsARCH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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ROAROEROICOperating and Profit MarginShow most profitable peers

7

2. ARCH Health Analysis

2.1 Basic Checks

  • ARCH has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, ARCH has more shares outstanding
  • The debt/assets ratio for ARCH has been reduced compared to a year ago.
ARCH Yearly Shares OutstandingARCH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ARCH Yearly Total Debt VS Total AssetsARCH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 4.29 indicates that ARCH is not in any danger for bankruptcy at the moment.
  • ARCH has a better Altman-Z score (4.29) than 65.99% of its industry peers.
  • ARCH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Altman-Z 4.29
ROIC/WACC0.79
WACC11.21%
ARCH Yearly LT Debt VS Equity VS FCFARCH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

  • A Current Ratio of 2.01 indicates that ARCH has no problem at all paying its short term obligations.
  • The Current ratio of ARCH (2.01) is comparable to the rest of the industry.
  • A Quick Ratio of 1.41 indicates that ARCH should not have too much problems paying its short term obligations.
  • ARCH has a Quick ratio of 1.41. This is comparable to the rest of the industry: ARCH outperforms 47.62% of its industry peers.
Industry RankSector Rank
Current Ratio 2.01
Quick Ratio 1.41
ARCH Yearly Current Assets VS Current LiabilitesARCH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

1

3. ARCH Growth Analysis

3.1 Past

  • The earnings per share for ARCH have decreased strongly by -64.17% in the last year.
  • Measured over the past years, ARCH shows a quite strong growth in Earnings Per Share. The EPS has been growing by 12.55% on average per year.
  • The Revenue for ARCH has decreased by -17.03% in the past year. This is quite bad
  • Measured over the past years, ARCH shows a small growth in Revenue. The Revenue has been growing by 5.11% on average per year.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%

3.2 Future

  • The Earnings Per Share is expected to decrease by -5.93% on average over the next years.
  • Based on estimates for the next years, ARCH will show a decrease in Revenue. The Revenue will decrease by -7.19% on average per year.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
ARCH Yearly Revenue VS EstimatesARCH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
ARCH Yearly EPS VS EstimatesARCH Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40

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7

4. ARCH Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.13, the valuation of ARCH can be described as correct.
  • Compared to the rest of the industry, the Price/Earnings ratio of ARCH indicates a somewhat cheap valuation: ARCH is cheaper than 79.59% of the companies listed in the same industry.
  • Compared to an average S&P500 Price/Earnings ratio of 26.21, ARCH is valued a bit cheaper.
  • A Price/Forward Earnings ratio of 6.77 indicates a rather cheap valuation of ARCH.
  • 89.12% of the companies in the same industry are more expensive than ARCH, based on the Price/Forward Earnings ratio.
  • ARCH's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.10.
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
ARCH Price Earnings VS Forward Price EarningsARCH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 77.55% of the companies in the same industry are more expensive than ARCH, based on the Enterprise Value to EBITDA ratio.
  • 87.76% of the companies in the same industry are more expensive than ARCH, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 11.58
EV/EBITDA 6.26
ARCH Per share dataARCH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • ARCH has an outstanding profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as ARCH's earnings are expected to decrease with -5.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

3

5. ARCH Dividend Analysis

5.1 Amount

  • ARCH has a yearly dividend return of 0.74%, which is pretty low.
  • ARCH's Dividend Yield is a higher than the industry average which is at 1.16.
  • With a Dividend Yield of 0.74, ARCH pays less dividend than the S&P500 average, which is at 1.89.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

  • On average, the dividend of ARCH grows each year by 47.85%, which is quite nice.
  • ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
ARCH Yearly Dividends per shareARCH Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

5.3 Sustainability

  • ARCH pays out 50.86% of its income as dividend. This is a bit on the high side, but may be sustainable.
  • ARCH's earnings are declining while the Dividend Rate has been growing. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
ARCH Yearly Income VS Free CF VS DividendARCH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B
ARCH Dividend Payout.ARCH Dividend Payout, showing the Payout Ratio.ARCH Dividend Payout.PayoutRetained Earnings

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ARCH Fundamentals: All Metrics, Ratios and Statistics

Arch Resources Inc

NYSE:ARCH (1/13/2025, 8:04:00 PM)

After market: 133.13 -1.7 (-1.26%)

134.83

+0.94 (+0.7%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)11-05
Earnings (Next)02-13
Inst Owners99.38%
Inst Owner Change0%
Ins Owners2.44%
Ins Owner Change0%
Market Cap2.44B
Revenue(TTM)2.68B
Net Income(TTM)179.45M
Analysts76.67
Price Target168.3 (24.82%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 0.74%
Yearly Dividend11.34
Dividend Growth(5Y)47.85%
DP50.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-64.92%
Min EPS beat(2)-78%
Max EPS beat(2)-51.83%
EPS beat(4)0
Avg EPS beat(4)-41.32%
Min EPS beat(4)-78%
Max EPS beat(4)-16.39%
EPS beat(8)1
Avg EPS beat(8)-25.89%
EPS beat(12)1
Avg EPS beat(12)-19.32%
EPS beat(16)2
Avg EPS beat(16)-17.53%
Revenue beat(2)2
Avg Revenue beat(2)4.61%
Min Revenue beat(2)3.07%
Max Revenue beat(2)6.14%
Revenue beat(4)4
Avg Revenue beat(4)7.09%
Min Revenue beat(4)3.07%
Max Revenue beat(4)11.78%
Revenue beat(8)8
Avg Revenue beat(8)8.31%
Revenue beat(12)12
Avg Revenue beat(12)10.33%
Revenue beat(16)16
Avg Revenue beat(16)11.04%
PT rev (1m)0%
PT rev (3m)-1.49%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-85.08%
EPS NY rev (1m)0%
EPS NY rev (3m)-64.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-18.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.44%
Valuation
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
P/S 0.91
P/FCF 11.58
P/OCF 6.2
P/B 1.69
P/tB 1.69
EV/EBITDA 6.26
EPS(TTM)10.27
EY7.62%
EPS(NY)19.9
Fwd EY14.76%
FCF(TTM)11.65
FCFY8.64%
OCF(TTM)21.75
OCFY16.13%
SpS148.03
BVpS79.73
TBVpS79.73
PEG (NY)N/A
PEG (5Y)1.05
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROCE 10.52%
ROIC 8.85%
ROICexc 10.16%
ROICexgc 10.16%
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
FCFM 7.87%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ROICexc(3y)35.22%
ROICexc(5y)N/A
ROICexgc(3y)35.22%
ROICexgc(5y)N/A
ROCE(3y)35.22%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5Y3.66%
ROICexc growth 3YN/A
ROICexc growth 5Y3.66%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
F-Score5
Asset Turnover1.13
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Debt/EBITDA 0
Cap/Depr 117.1%
Cap/Sales 6.83%
Interest Coverage 250
Cash Conversion 108.14%
Profit Quality 117.55%
Current Ratio 2.01
Quick Ratio 1.41
Altman-Z 4.29
F-Score5
WACC11.21%
ROIC/WACC0.79
Cap/Depr(3y)152.13%
Cap/Depr(5y)186.24%
Cap/Sales(3y)7.16%
Cap/Sales(5y)10.54%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A
EBIT growth 1Y-66.72%
EBIT growth 3YN/A
EBIT growth 5Y13.72%
EBIT Next Year-51.62%
EBIT Next 3Y-1.76%
EBIT Next 5YN/A
FCF growth 1Y-79.58%
FCF growth 3YN/A
FCF growth 5Y7.3%
OCF growth 1Y-66.1%
OCF growth 3Y118.27%
OCF growth 5Y8.74%

Arch Resources Inc / ARCH Fundamental Analysis FAQ

What is the fundamental rating for ARCH stock?

ChartMill assigns a fundamental rating of 6 / 10 to ARCH.


What is the valuation status of Arch Resources Inc (ARCH) stock?

ChartMill assigns a valuation rating of 7 / 10 to Arch Resources Inc (ARCH). This can be considered as Undervalued.


Can you provide the profitability details for Arch Resources Inc?

Arch Resources Inc (ARCH) has a profitability rating of 8 / 10.


What is the earnings growth outlook for Arch Resources Inc?

The Earnings per Share (EPS) of Arch Resources Inc (ARCH) is expected to decline by -81.89% in the next year.


How sustainable is the dividend of Arch Resources Inc (ARCH) stock?

The dividend rating of Arch Resources Inc (ARCH) is 3 / 10 and the dividend payout ratio is 50.86%.